Petrol and diesel prices were increased by oil marketing companies on Saturday as global oil prices remained firm, reaching their highest levels this fiscal.
Petrol prices increased by 24 paise to Rs 82.13 per liter on Saturday from Rs 81.89 per liter the previous day. Diesel prices, on the other hand, increased by a higher margin of 27 paise to Rs 72.13 a liter, up from Rs 71.86 a liter on Friday.
Oil companies began increasing pump prices of the two petroleum products from last Friday after a nearly two-month-long hiatus in a fuel price revision. The prices increased for five consecutive days before going for a day’s pause on Wednesday last. It has risen on all days thereafter, meaning the prices have risen in eight of the past nine days.
In five days, the petrol price has gone up by 53 paise and diesel prices by 95 paise per liter. With Saturday’s increase, petrol prices have now risen by Rs 1.07 per liter and diesel by Rs 1.67 a liter since November 20.
Earlier, petrol prices had been static since September 22, and diesel rates hadn’t changed since October 2. Though retail pricing of petrol and diesel has been deregulated and oil marketing companies were following a daily price revision formula, the same was suspended for almost two months to prevent volatility in international oil markets from impacting fuel prices regularly during the pandemic.
But with crude on the boil again after the news of a successful coronavirus vaccine’s launch soon, OMCs finally undertook a price increase to cover up on their under-recovery on the sale of two petroleum products.
The benchmark Brent crude has crossed $48 a barrel on Intercontinental Exchange (ICE). It has remained at over $43 a barrel for the most part of November.
OMCs need almost 40 paise per liter increase in retail prices of petrol and diesel to make up for a $1 increase in crude. Going by this yardstick, product prices would have to be increased up to Rs 2 per liter to help them make up their recovery.
